The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Securities sales cut into profit at FB Financial in Tennessee

FB Financial in Nashville, Tenn., reported lower quarterly profit that reflected its decision to sell underwater securities.

The $12.9 billion-asset company said in a press release that its third-quarter earnings fell by 47% from a year earlier, to $10.2 million.

FB Financial said it sold $318.6 million of available-for-sale securities at a $40.2 million loss. The company said it reinvested the proceeds into higher-yielding securities.

The company also noted that its funding costs rose by 6 basis points from the second quarter, to 2.83%, due to an issuance of $369.1 million of brokered deposits. The company said it “took advantage of favorable relative terms” when it took on the brokered deposits.

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